MEXICO HEADS TOWARDS BEING THE FIFTH SOLAR ENERGY MARKET WORLDWIDE

  • Solar Power Mexico opens the Mexican market, promoting new investments in the energy solar energy sector.
  • Mexico could reach 19 GW of installed capacity by 2030, placing it behind China, India, USA and Japan.

 

MEXICO CITY SEPTEMBER 5, 2018.- The Energy Reform in Mexico will allow the country to rank amongst the main solar energy producers worldwide within the next five years, with an installed capacity of 19 GW (Gigawatts) by 2030; thus, placing it fifth globally in its sector.

Due to this perspective, Mexico has become a magnet for investors from around the world, said Sarah Möller, spokesperson of the first edition of Solar Power Mexico, which will be held in Mexico City, March 2019.

Möller noted that with the consideration of the new photovoltaic capacity, which is bound to develop within Mexico by 2021, will position the country in fifth place, right behind China, India, the United States and Japan.

According to the analysis, New Opportunities for Investment - The Boom in the Solar Sector in Mexico: Market, regulations and business models from the German GIZ Gesellschaft für Internationale Zusammenarbeit (German Cooperation for Sustainable Development in Mexico) estimates that Mexico could have up to 19 GW (gigawatts) of solar energy installed in 2030, while Bloomberg New Energy Finance expects installed capacity of 100 GW in 2040.

In result, the Mexican government showed a significant interest, raising the share of renewable energies from 20 to 35 percent of all energy by 2024, and to 50 percent by 2050. This impulse for power generation projects have resulted in an apparent increase in companies entering the Mexican market, said Möller.

Since the implementation of the Energy Reform in Mexico, specifically in the photovoltaic sector, which lead to a high investment expectation within the country. This is reflected in the participation of investors in the Long-Term Auctions (LTA), in which solar energy projects have had the highest participation of winning contracts at competitive prices, claimed GIZ.

Up to 2017, three LTA´s were carried out, which means an investment of around 6.2 billion dollars (mdd) in solar energy within three years (these auctions mainly consider generation in solar renewable energy).

Likewise, the structure of the market derived from the Energy Reform allows the development of a sector with clear regulations and structures. According to the GIZ some of the advantages are the different business alternatives to commercialize energy and related products.

Within the framework of the Wholesale Electricity Market (MEM), the most important are: long and medium-term auctions, bilateral contracts with public or private entities (PPAs), models for Distributed Generation (DG) and on-site generation (interesting for Energy Service Companies (ESCO)), along with the sale of energy and associated products in the Short-Term Market and even Clean Energy Certificates (CEL).

The commercialization of CEL represents an additional opportunity for the generators of solar energy to obtain income through their clean energy generation since the requirements of CEL, defined by the Mexican Ministry of Energy (SENER), force suppliers to acquire them from a total of its consumption.

The growth of the solar sector, specifically considering the decrease in cost of photovoltaic installations in recent years, have contributed to the growing adoption of DG systems worldwide. Therefore, it is expected that this trend will be replicated in the following years within the country, with the support and promotion of the energy regulating agency (CRE) through mechanisms such as net-metering and net-billing (net metering and net turnover).

Given this developed panorama, the country will host the first edition of Solar Power Mexico, which will be held at the Citibanamex Center in Mexico City from March 19 to 21, 2019. Here, more than 100 international companies from Europe, United States, Asia and Latin America will exhibit the most advanced technology in the field.

Your contact for further information:

Sarah Möller

Tel: +52 55 7028-3335 ext.802

E-mail: sarah.moeller@hfmexico.mx

 

Website : solarpowermexico.mx

 

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